When Is Using A Private Mortgage Lender A Wise Choice?
posted in Mortgage News
It can be easy to miss private mortgage lenders among the noise and glossy advertising of Canada’s Big 5, but they are often viewed as saviours by some individuals or institutions when financing options are unavailable to them. Private mortgage lenders offer short term asset backed loans for the purchase of a property, and they can be a fantastic alternative to other, regular financing options, depending upon your circumstances.
When might a private lender be a wise choice?
There are many situations in which a private mortgage lender might prove to be a wise option, and here are just a few of them:
- If you’re trying to purchase a building that the big banks and other lending institutions are not prepared to finance
- You require a loan on a short term basis
- You don’t want to wait for a lengthy approval process when applying for finance
- Your credit history is causing regular lenders to turn you down for a mortgage
- If your income cannot be verified and is preventing you from getting a mortgage
Who are private mortgage lenders?
Wishing to invest their surplus cash for short terms to make profits from private mortgage loans, these lenders are individuals or institutions who lend money for property purchases, using the property itself as collateral. Often preferring to invest in regions that are close to their place of residence or operations, they choose between residential mortgage investments and funding commercial properties. Looking past bad credit histories and the like, they do their best to assess each individual on a case by case merit and may even opt to meet the borrowers to discuss their investment in person. While they do usually charge a higher rate of interest, they are usually the much swifter and simpler option for securing a loan.
The best way of finding out if a private lender might be a wise choice for you, is to talk to a qualified and experienced mortgage broker. A mortgage broker will review all your mortgage options once they’ve discussed with you in great detail your current circumstances and financial situation and present you with a series of reliable lenders that they believe will get you the best deal for your specific needs. They can even help facilitate the private mortgage agreements as appropriate legal and binding contracts, relieving you of a lot of time and stress.
To discover if a private mortgage lender might be able to help you secure a loan, find a local, trusted mortgage broker who can get the ball rolling.